Deutsche Bank Lowers PT On Fabrinet To $24

Deutsche Bank has published a research report on Fabrinet (NYSE: FN) as the company experiences a push-out on demand concerning optical space.

In the report, Deutsche Bank writes "We are reducing on estimates and price target on Fabrinet based on what we view as a near-term push out of demand in the optical space. Our checks with suppliers and recent commentary from Finisar, Ciena and Sanmina-SCI suggest that there is a push-out of demand happening in the optical market after strong growth last year. While we do not believe long-term demand drivers have changed, we expect a few quarters of weakness in the supply chain. We continue to be positive on the long-term trends in the telecom space, which will drive optical demand, and expect Fabrinet to continue to gain share and grow faster than the market."

Deutsche Bank maintains its Buy rating but has lowered the price target from $28 to $24.

Fabrinet closed yesterday at $19.81.